Patrick lives near two gas stations, Exxon and Shell. If Exxon decreases the price of gas, we predict that the quantity of gasoline demanded at Shell will
A) decrease because Exxon and Shell gas are complements.
B) decrease because Exxon and Shell gas are substitutes.
C) increase because Exxon and Shell gas are substitutes.
D) increase because Exxon and Shell gas are complements.
E) not change Exxon and Shell are different brands of gasoline.
B
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What is the nature of the elasticity of the demand curve faced by perfectly competitive firm?
A. Perfectly inelastic B. Perfectly elastic C. Unit elastic D. Highly elastic
The quantity demanded of a good is the amount that buyers are
a. willing to purchase. b. willing and able to purchase. c. willing, able, and need to purchase. d. able to purchase.
In reality, prices of non-renewable resources have not increased continually according to the model developed in Section 16.3 because of
A) abundance of the resource. B) technological progress changing marginal cost. C) changing market power of producers. D) All of the above.
Protecting intellectual property rights:
A. always benefits society. B. never benefits society. C. rarely affects society overall. D. is hotly debated as to whether it benefits or costs society overall.